As Europe faces rising energy costs and widespread energy poverty, a new report warns that the continent's energy transition must prioritize social equity and empower local regions to ensure a just and effective shift to climate neutrality.
While 47 million people in the European Union (EU) still can't adequately heat their homes, rising energy costs and the uneven impacts of climate policies are increasing social vulnerability across the continent, according to "The State of Regions and Cities 2025" report.
The European Committee of the Regions released its State of Regions and Cities 2025 report in Brussels during the European Week of Regions and Cities, held from 13 to 15 October.
The report presented striking findings on the economic and social resilience capacity of regions at the heart of the energy transition.
According to the report, 47 million Europeans remain unable to keep their homes warm, and energy poverty has dramatically increased since 2020. It noted that, particularly in rural and low-income communities, high energy costs are deepening inequality and threatening social cohesion.
The report stated that 70% of climate mitigation actions and 90% of climate adaptation policies in the EU are implemented directly by regions and cities. However, the plan to centralize EU funds at the national level in the 2028–2034 budget period risks weakening the authority of local governments, a development that could "undermine the delivery of energy and climate policies on the ground," the report warned.
The report included projections from the International Energy Agency (IEA), estimating that global renewable energy capacity will increase by over 5,500 gigawatts by 2030.
It noted that most of this transition within the EU will be driven by city and regional administrations. Yet, due to uneven investment and bureaucratic barriers, many regions in Eastern and Southern Europe continue to face challenges such as outdated electricity grids, insufficient energy storage, and shortages of skilled labor.
- Social equity necessary in EU energy shift
The report emphasized that the energy transition shouldn't be seen merely as a technological shift but as a socially just transformation that addresses local realities and inequalities.
It calls for maintaining a strong "just transition" framework to support regions facing economic and employment challenges during the shift toward climate neutrality.
The report also stressed that replacing the concept of a "just transition" with a purely "clean transition" approach risks ignoring the social and regional dimensions of the green shift.
Listing the demands of local governments, the report urged the digitalization and acceleration of permitting processes for renewable energy projects, the creation of regional energy agencies in rural areas, the provision of technical and workforce support, and the inclusion of regional authorities in the design and implementation of EU transition policies.
- Call for stronger investment in nature-based and energy resilience projects
The report cited the Occitania region in France, where a €1 billion hydrogen corridor investment is underway, and Spain's Andalucia region, where half of agricultural irrigation needs are met using recycled wastewater, as examples of the potential for local transformation across Europe.
However, it also warned that the financial foundation of the green transition is under pressure and called for stronger EU investment in nature-based and energy resilience projects.
Ultimately, the report identified local capacity as the most fragile link in Europe's energy transition, stressing that achieving the EU's climate-neutral goals will only be possible by empowering municipalities and regional agencies, not by centralizing decisions in Brussels.
By Murat Temizer in Brussels
Anadolu Agency
energy@aa.com.tr
